Archive for the ‘NEVADA’S ECONOMY REPORT’ Category:

Dec
17
Nevada’s Economy: Tourism Accounts for Slow Growth of Southern Nevada Economy

As we explained in previous issues of Nevada’s Economy, the Southern Nevada economy lags well behind the nation in recovering from the Great Recession. Nevada lost 14.1 percent of its jobs during the Great Recession, and as of October, statewide employment was still 9.7 percent below the high-water mark of 1.297 million set in May 2007. Southern Nevada lost 14.4 percent of its jobs during the Great Recession, and as of October, employment in Southern Nevada was 9.1 percent below the high-water mark of 931.2 thousand set in February 2007.

Sep
30
Nevada’s Economy: Nevada Weekly Earnings Remain Well Off National Pace

Nevada's Economy: Nevada Weekly Earnings Remain Well Off National Pace

 

Nevada lags well behind the nation during the recovery from the Great Recession. At 52.4 percent, Nevada still has the highest percentage of home-owners underwater on their mortgages. Nevada’s unemployment rate remains the highest in the nation at 9.5 percent. Nevada lost 14.4 percent of its jobs during the Great Recession, and as of July, statewide employment was still 11.3 percent below the high-water mark of 1.297 million set in May 2007. As a point of comparison, the United States as a whole lost 6.3 percent of its jobs during the Great Recession, and as of July, nationwide employment was 1.5 percent below the high-water mark of 138.056 million set in January 2008.

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Sep
6
Nevada’s Economy: Measuring U.S. and Nevada Unemployment

Nevada's Economy- Measuring U.S. and Nevada Unemployment

Earlier this month, we learned the U.S. unemployment rate was a seasonally adjusted 7.4 percent in July. This July figure is the official unemployment rate, and it is sometimes known as the “U-3” rate. The U-3 unemployment rate is measured as the number of unemployed as a percent of the civilian labor force. To be considered part of the civilian labor force, one must either be working or actively seeking a job.

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Aug
7
Nevada’s Economy: The Nevada Economy, Why the Ups and Downs?

Nevada's Economy: The Nevada Economy, Why the Ups and DownsNevada’s economic upswing and subsequent tumble in the past decade is mostly the result of its small and highly concentrated economic base. A region’s economic base is determined by which of its sectors exports goods or services to other parts of the country. Tourism is a little different in that the industry brings its customers into a region to provide them with services.

Economists typically measure the sectors forming a region’s economic base by using location quotients. A location quotient provides information about whether the region has more or less of a particular industry than the national average. With the idea that people across the country generally consume similar items, industries that are present in a region above the national average are expected to export to the rest of the country. These industries have a location quotient greater than one and form the region’s economic base.

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Jul
3
Nevada’s Economy: Nevada Job Gains, Not as Bleak as They Appear

Nevada's Economy- Nevada Job Gains, Not as Bleak as They Appear

According to the establishment survey for employment, Nevada is experiencing fewer job gains than would be expected in this state of an economic recovery. Annualized data through May 2013 show employment growth of 0.2 percent. In comparison, the establishment survey showed annual employment growth of 1.0 and 2.6 percent in 2011 and 2012, respectively. For Nevada, growth of 0.2 percent would be the lowest growth of any non-recession year since 2000. With other economic indicators such as taxable sales and home prices pointing upward, should we believe the data?

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May
23
Nevada’s Economy: Nevada’s Economic Recovery Gaming and Tourism

Nevada's Economy- Nevada's Economic Recovery Gaming and Tourism
Improving world economic conditions over the past three years have led to a partial recovery of Las Vegas tourism. Nonetheless, most measures of Las Vegas tourism, particularly spending, have not yet reached their prerecession peaks. The slow recovery in Las Vegas tourism is due to a number of factors, including sluggish U.S. economic growth, the late recovery in the Arizona and California economies, economic problems in the Eurozone, and a slowing of economic growth in Asia. As these economies improve, Las Vegas tourism will continue growing.

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May
1
Nevada’s Economy: Nevada Housing Market Showing Signs of Life

Nevada's Economy- Nevada Housing Market Showing Signs of Life
Much of the strain on the Nevada economy during the Great Recession came from the burst of the housing bubble, as real estate and construction are both vital to the health of Nevada’s economy. While growing tourism and hospitality has led to some improvement, Nevada is behind a majority of the country in achieving a full economic recovery, mostly the result of weak real estate and construction sectors. The good news is that the Nevada housing market is beginning to show signs of a recovery.

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Mar
28
Nevada’s Economy: The Nevada Economy Shows Renewed Strength

Nevada's Economy- The Nevada Economy Shows Renewed Strength
Nevada economic activity accelerated sharply in 2012. After posting job losses of 79.9 thousand, 86.7 thousand and 8.5 thousand in 2008, 2009, and 2010, respectively, the Nevada economy created just 11.2 thousand jobs in 2011. According to recently revised data, the Nevada economy created 29.3 thousand jobs for a 2.6 percent growth rate in 2012. That rate of growth put Nevada well ahead of the U.S. figure of 1.7 percent for 2012 and in fourth place among the states for the fastest rate of employment growth in the U.S., behind North Dakota, Utah and Texas.

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Mar
7
Nevada’s Economy: Is the U.S. Economy Headed for Another Recession?

Nevada's Economy- Is the U.S. Economy Headed for Another Recession
U.S. real gross domestic product (GDP) contracted at an annual rate of .1 percent in the fourth quarter of 2012. The reduction marks the first decline in U.S. real GDP since the end of the Great Recession in June 2009. The dip in output brings to the forefront anxieties about whether the economy is headed toward another recession. To evaluate the chances of another recession, we analyze the current factors shaping spending and the outlook for these components of economic activity.Read the Entire Report

Feb
4
Nevada’s Economy: How Tourism is Contributing to Nevada’s Economic Recovery

Nevada's Economy- How Tourism is Contributing to Nevada's Economic RecoveryAs we wrote several months ago, the Nevada Tourism industry saw a deeper recession, and segments of it have been slower to recover than the U.S. economy as a whole. Nonetheless, its dominance of the Nevada economy means that its recovery remains highly important to economic growth in the Silver State. How much is tourism contributing to Nevada’s economic recovery? Considerably more than it seems.

Several factors likely contributed to the sharp decline in Nevada tourism during the Great Recession of 2007-2009. As we explained last month, the West generally saw a deeper recession and a slower recivery than the U. S. as a whole. U.S. employement fell by 6.4 percent from its peak to its bottom. Declines were much sharper in the West.

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Jan
10
Nevada’s Economy: What’s Shaping Nevada’s Economic Recovery?

Nevada's Economy- What's Shaping Nevada's Economic Recovery
In 2007, Nevada saw an abrupt shift from rapid economic growth to a severe downturn. The state’s economy is now mired in a sluggish recovery, in which only 21 percent of the jobs lost during its recession have been restored. Although current economic conditions make it difficult to see the potential for strong economic growth in Nevada’s future, an understanding of the forces shaping the direction of Nevada’s economy reveals that such potential exists.

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Nov
27
Nevada’s Economy: Southern Nevada Housing Market Shows Signs of Recovery

Nevada's Economy- Southern Nevada Housing Market Shows Signs of RecoverySouthern Nevada housing prices are on the rise and most Las Vegans consider that a good sign after housing prices began to slide about six years ago. A lack of supply is contributing to the rise and prices are looking to increase over the next few years as the Southern Nevada economy improves. Nonetheless, the overhang of property held in weak hands seems likely to prevent a sharp acceleration in either home prices or construction.

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Oct
25
Nevada’s Economy: What’s up at the Pump?

Nevada's Economy- What's up at the Pump
High pump prices for gasoline naturally have Nevadans concerned. Nevada residents have seen a growing share of their expenditures go toward gasoline, and they also recognize the impact that higher gasoline prices can have on the state’s all-important tourism industry. Fortunately, most market indicators suggest that gasoline prices have peaked and should begin falling soon.

In most years, the summer driving season sees the highest gasoline prices. Gasoline prices typically begin falling after Labor Day, as the summer driving season ends. In 2012 however, increased tensions with Iran led to fears of disrupted world oil supplies and a surge in crude oil prices…Read the Entire Report

Sep
28
Nevada’s Economy: Where is the U.S. Economy Headed?

Nevada's Economy- Where is the U.S. Economy HeadedThe growth rate of U.S. real gross domestic product (GDP) slowed from a 4.0 percent annualized rate in fourth quarter 2011 to a 2.0 percent rate in first quarter 2012 and then a 1.3 percent rate in second quarter 2012. As of second quarter 2012, U.S. real GDP remained 6.0 percent below its potential. Is economic growth likely to accelerate and close the gap with potential GDP, or is it likely to languish? To answer this question, we examine the recent course of spending in the economy and its likely course over the next few quarters.

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Aug
28
Nevada’s Economy: Fiscal Cliff Raises Fears of U.S. Recession

Nevada's Economy- Fiscal Cliff Raises Fears of U.S. RecessionIn late 2012, U.S. policymakers will be faced with making controversial decisions about the nation’s fiscal policies. As current law stands, the U.S.. government will implement a number of tax increases and spending cuts beginning in 2013. Because implementation of current law resuls in an abrupt change in government spending and taxation policy, the current laws are seen as creating what is known as a “fiscal cliff.” According to many analysts, plunging over the fiscal cliff is likely to push an already weak U.S. economy back into recession.

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Jul
25
Nevada’s Economy: Slowing U.S. Economic Growth Affecting Nevada Tourism

Nevada's Economy- Slowing U.S. Economic Growth Affecting Nevada Tourism

The Nevada tourism industry saw a deeper recession, and segments of it have been slower to recover than the U.S. economy as a whole. As a result, the slower U.S. economic growth evidenced in the first half of 2012 bodes poorly for the tourism-dependent Nevada economy. Will a little bit stronger economic activity in the West help buoy the tourism industry on which Nevada is so dependent?

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Jul
11
Nevada’s Economy: Is U.S. Monetary Policy Creating an Inflationary Environment?

Nevada's Economy- Is U.S. Monetary Policy Creating an Inflationary Environment

With the U.S. economy still performing poorly, U.S. monetary policy remains quite easy. Because expected inflation is greater than short-term interest rates, real short-term interest rates are negative. In addition, the Federal Open Market Committee (FOMC) announced on Wednesday, June 20 that it will take steps to further reduce long-term interest rates by selling some of the shorter-term government bonds it holds and using the proceeds to buy longer-term government bonds. Is conduct of monetary policy creating an environment in which we should worry about inflation?

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May
24
Nevada’s Economy: The Changing Nature of Las Vegas Tourism

Nevada's Economy- The Changing Nature of Las Vegas Tourism
The Southern Nevada economy is largely defined by tourism. A region’s economic base is made up of the industries that produce the goods and services the region provides to the rest of the world. According to data from the U.S. Bureau of Labor Statistics, the Clark County economic base comprises leisure and hospitality and air and ground transportation services, the latter undoubtedly the result of tourism.

With strong population growth, the construction and real estate industry also stood out as an important aspect of the Southern Nevada economy until about 2007. Despite its strong contributions, however, construction and real estate cannot be considered part of a region’s economic base. Its output is not exported to the rest of the world. What drives construction and real estate is the region’s growth – which is mostly dependent on the strength of the industries in its economic base.

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Mar
30
Nevada’s Economy: NV Economy More Firmly in Recovery Than Previously Realized

Nevada's Economy- NV Economy More Firmly in Recovery Than Previously Realized

New employment numbers released in March by the State of Nevada Department of Education, Training and Rehabilitation (DETR) show that Nevada’s economy fared better in 2010 and 2011 than earlier estimates had indicated. The Nevada economy did not shed as many jobs in 2010 as was previously thought and it added more jobs in 2011 than was previously thought.

The revised data show that the Nevada economy is more firmly in recovery than was previously realized. Similar patterns are found in the revised numbers for the Las Vegas and Reno-Sparks metropolitan areas.

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Feb
27
Nevada’s Economy: Why U.S. Monetary Policy Remains Easy

Nevada's Economy- Why U.S. Monetary Policy Remains Easy

On January 25, 2012, the Federal  Open  Market Committee (FOMC) announced that it decided “to keep the target range for the federal funds rate at 0 to 1/4 percent and currently anticipates that economic conditions—including low rates of resource utilization and a subdued outlook for inflation over the medium run—are likely to warrant exceptionally low levels for the federal funds rate at least through late 2014.”

Committee members are divided about the exact targets that will need to be sustained over the next few years, but the range of opinion includes federal funds rates that would maintain the stance of U.S. monetary policy about where it has been in place since 2009. With U.S. economic conditions improving, why are some committee members expecting the necessity of holding federal funds rates at such low levels for a prolonged period?

 

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Jan
30
Nevada’s Economy: Wrap-up of 2011 and Outlook for 2012

Nevada's Economy- Wrap-up of 2011 and Outlook for 2012
The growth rate of the U.s. economy slowed down sharply from fourth quarter 2010 to first quarter 2011. After that, U.S. economic growth accelerated for the next two quarters. A variety of monthly measures – including strong spending and increased manufacturing output – suggest that the growth rate of real GDP will prove to have been quite strong during fourth quarter 2011.

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Dec
30
Nevada’s Economy: How U.S. Employment is Changing

During the most recent recession, U.S. employment fell by 7.490 million jobs (5.4 percent). During the first 8 months of the recovery, U.S. employment declined another 1.247 million jobs, which reduced employment to 6.3 percent below the prerecession peak. Since hitting bottom in February 2010, U.S. employment has risen by only 2.270 million jobs. As [...]

Nov
18
Nevada’s Economy: Las Vegas Tourism is Changing as it Recovers

As of September 2011, Las Vegas saw 19 consecutive months of increased tourism, and Las Vegas visitor volume has finally returned close to the levels seen in 2007, before the recession. Las Vegas tourism is changing as it recovers. Visitors are coming from farther away, staying longer and paying higher hotel rates than in recent years. Visitors also seem to be gambling less and purchasing less from the retail shops in the casinos.

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Oct
27
Nevada’s Economy: A Closer Look at U.S. Economic Weakness

Nevada's Economy- A Closer Look at U.S. Economic Weakness
The most recent recession was the deepest of any since World War II. During the 2007 – 2009 recession, U.S. real GDP fell 5.1 percent from peak to trough. The average peak to trough decline in real GDP during the ten previous recessions was 1.7 percent.

Read the entire report:Download Nevada Economy September 2011

Aug
26
Nevada’s Economy: Is the U.S. Economy Headed for a Double-Dip Recession?

Nevada's Economy- Is the U.S. Economy Headed for a Double-Dip Recession
In late July, the Bureau of Economic Analysis released revised GDP figures. The new data tell us that the most recent U.S.  recession was deeper and the ensuing recovery was much weaker than we previously thought. Moreover, first and second quarter 2011 showed the weakest economic growth since the official end of the recession in June 2009. The tepid recovery raises a concern that the U.S. economy could dip back in to a recession.

Read the entire report: Download Nevada Economy July 2011

Aug
3
Nevada’s Economy: Reducing the U.S. Government’s Budget Deficit

Nevada's Economy- Reducing the U.S. Government's Budget Deficit

In recent months, we have heard quite a bit about the importance of reducing the U.S. government’s budget deficit and about the necessity of raising the debt ceiling.  These two ideas are related because a budgetary deficit means that government spending is more than revenues, and the government must borrow the difference.  As long as the federal government runs a deficit, its indebtedness continues to grow.  Because the federal government has set a ceiling on the amount of debt it allows itself to have, it is occasionally forced to raise the ceiling to accommodate its accumulating debt.  Such an occasion gives us a time to pause and consider the directions of government spending, revenues and the rate at which the U.S. government debt is accumulating.

Read the entire report: Download Nevada Economy June 2011

Jun
22
Nevada’s Economy: Is stagflation at the door? Rising prices and weakened growth is a troubling mix

Nevada's Economy- Is stagflation at the door? Rising prices and weakened growth is a troubling mix
The U.S. economy seems to be facing a troubling mix of rising prices and weakening growth. The consumer price index (CPI) has risen considerably over the past six months, showing an annualized gain of 5.2 percent from November through May. Much of the gains have been the result of rising food and energy prices. Nonetheless, Core CPI (which excludes the volatile food and energy components) is also showing signs or rising, with an annualized gain of 2.1 percent from November through May.

 

Read the entire report: Download Nevada Economy Report May 2011

May
27
Nevada’s Economy: An accelerating recovery in the west, Nevada will see increases in tourism, hospitality and gaming activity

Nevada's Economy- An accelerating recovery in the west, Nevada will see increases in tourism, hospitality and gaming activity
As economic activity in Nevada’s neighboring western states improves – particularly in populous California – Nevada will see increased tourism, hospitality and gaming activity. In 2010, Nevada gaming revenue increased by only 0.1 percent. According to the Western Blue Chip Economic Forecast, a survey of experts by the W.P. Carey School of Business at Arizona State University, Nevada gaming revenue will increase by 3.1 and 3.0 percent in 2011 and 2012, respectively.

 

Apr
18
Nevada’s Economy: Headwinds to U.S. Economic Growth may be Increasing & Nevada Economic Update

In early 2011, the U.S. economy finally began to show a decent rate of employment growth, with a gain of nearly 480,000 nonfarm jobs in the first quarter. As the economy nears its second year of recoery and expansion, however, the headwinds to economic growth seem to be increasing. Oil prices have risen substantially in [...]

Mar
31
Nevada’s Economy: Differing perspectives on the Las Vegas housing market presents different outlooks for potential recovery

Nevada's Economy- Differing perspectives on the Las Vegas housing market presents different outlooks for potential recovery
The U.S. Census and data from the Las Vegas Multiple Listing Service (MLS) and the Center for Business and Economic Research (CBER) at the University of Nevada offer very different perspectives on the Las Vegas housing market.

According to the U.S. Census, the Las Vegas metropolitan area had 840,343 housing units, 715,365 were occupied and 124,978 (14.87%) were vacant when the census was conducted in April 2010. According to the Las Vegas MLS and CBER, the Las Vegas metropolitan area has 767,580 housing units in 2010, 735,530 were occupied and 32,050 (4.18%) were vacant in the fourth quarter.

Read the entire report:Download Nevada Economy Report February 2011

Feb
25
Nevada’s Economy: With U.S. consuption spending rising for the ninth straight month, the Nevada economy continues to show uneven signs of recovery

Nevada Economy Report Jan 2011

The Nevada economy was hit extremely hard during the most recent U.S. recession. As the U.S. economy continued to strengthen in the latter half of 2010, the Nevada economy finally showed some uneven signs of growth. Because the Nevada economy is so relient on gaming, hospitality and tourism, the state’s economic recovery is being led by that sector. Housing and commercial real estate will likely follow later – once the growth of the Silver State’s economic base is reestablished.

Read the entire report: Download Nevada Economy January 2011